99% of Nigerian Depositors are Fully Covered by Insurance, NDIC Assures
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) announced on Thursday that nearly all depositors across the Nigerian financial system are adequately protected under its enhanced coverage framework.
Speaking at the Corporation’s Special Day at the ongoing Abuja International Trade Fair, the Managing Director and Chief Executive of NDIC, Mr. Thompson Oludare Sunday, provided figures showing widespread protection: 98.98 per cent of depositors in Deposit Money Banks (DMBs), 99.27 per cent in Microfinance Banks (MFBs), 99.34 per cent in Primary Mortgage Banks (PMBs), and 99.99 per cent in Payment Service Banks (PSBs) are fully covered by deposit insurance.
He explained that the extensive coverage was achieved through the upward review of the maximum deposit insurance limit across the various bank categories.
“Currently, the NDIC insures depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks up to a coverage limit of five million naira,” Sunday said. “Depositors of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to two million naira. This provides stronger assurance to millions of Nigerians that their savings are safe.”
The NDIC boss used the platform to caution Nigerians about the rising tide of fraudulent schemes.
“It is important for Nigerians to remain vigilant against Ponzi schemes and other fraudulent investment platforms. Always ensure your funds are placed only in Central Bank of Nigeria licensed banks, all of which are covered by deposit insurance provided by the NDIC. This vigilance is crucial to protecting your hard-earned savings,” he warned.
Mr. Sunday explained the process for depositors with funds exceeding the insured limit in the event of a bank failure. Such depositors first receive an initial payout up to the maximum coverage, while balances above that amount are settled through liquidation dividends.
“Liquidation dividends refer to payouts made to depositors and creditors from proceeds generated from the sale of a failed bank’s assets and recovered debts,” he noted. “These are paid on a pro-rata basis, meaning depositors receive a proportionate share of the recovered funds relative to their outstanding balances beyond the insured limit.”
Citing a recent case to demonstrate the corporation’s effectiveness, Mr. Sunday referenced the revocation of Heritage Bank’s license on June 3, 2024. He said NDIC promptly reimbursed insured depositors using the Bank Verification Number (BVN) in partnership with the Nigeria Inter-Bank Settlement System (NIBSS) to identify alternate accounts for payment.
“Depositors with sums exceeding five million naira were first paid up to the insured amount, and liquidation dividends are being paid subsequently from recovered assets and debts,” he explained. “The first tranche of liquidation dividends commenced on April 25, 2025, and payments continue as the Corporation realises asset sales and debt recoveries. This approach demonstrates NDIC’s effectiveness in ensuring comprehensive depositor protection and financial stability.”
Earlier, the President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu, represented by Sir Agaba Idu Jideani, said the trade fair’s theme—Sustainability, Consumption, Incentives, and Taxation—reflects the need for resilient institutions.
“We are pleased to note the alignment between this theme and the mandates of NDIC, which provides a safety net for depositors, contributes to financial system stability, and supports confidence in our banking sector,” Obegolu said.
He added that NDIC’s expansion of coverage is critical for businesses, particularly small and medium-sized enterprises (SMEs).
“By extending deposit insurance coverage beyond deposit money banks to include microfinance banks, mortgage banks, non-interest banks, payment service banks, and mobile money operators, NDIC has shown responsiveness to the evolving dynamics of Nigeria’s financial landscape,” he said.
He concluded that these interventions “not only protect depositors but also create a more enabled environment for SMEs and entrepreneurs to participate confidently in the economy.”
